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A.M. Best Places Ratings of Chrysler Insurance Company Under Review With Negative Implications CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, NEW JERSEY, U.S.A., May 1, 2009—A.M. Best Co. has placed the financial strength rating of B++ (Good) and issuer credit rating of “bbb” of Chrysler Insurance Company (CIC) (Farmington Hills, MI) under review with negative implications. These rating actions are due in part to Chrysler Automotive’s (Chrysler LLC) April 30, 2009 bankruptcy filing and the unknown prospects of Chrysler Financial Services. CIC, formerly DaimlerChrysler Insurance Company (DCIC), is a wholly owned subsidiary of Chrysler Financial Services Americas LLC (CFS). Chrysler LLC and CFS operate as stand-alone companies. CIC’s capitalization and operating performance has been and continues to be robust. However, CIC’s current ratings are constrained by the operating challenges of CFS and also Chrysler LLC’s recent bankruptcy filing. The continuing solvency pressure on these entities has prompted these rating actions. While A.M. Best believes that CIC’s current capital position adequately supports its ratings, any structural changes resulting from CFS and also Chrysler LLC‘s bankruptcy filing, could adversely affect the dynamics of CIC. Additionally, A.M. Best is concerned that the continuing turmoil in the financial markets and worsening macroeconomic trends coupled with the ongoing weak U.S. auto market may impact CFS’s ability to attract and retain business and negatively impact CIC’s business plan. The ratings will remain under review pending A.M. Best’s imminent review and further discussions with management relating to Chrysler LLC’s bankruptcy filling, dubbed as a swift, “surgical” process, and organization structure or viability of CFS. A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world. For current Best’s Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. ### |
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